Stock market correction or bear market/crash? Either way I bailed.

Sarenco said:
What I care about is the long-term total return on my investments, as expressed in my home currency.

Whether any particular index is above or below its previous high is of no consequence to me.
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Why ? I know one of my old DC pensions in a currency hedged fund .
Do publicly available currency hedged funds not exist ?
 
Sarenco said:
The FTSE Eurozone index has materially outperformed the FTSE All World index over the past 12 months when measured in Euro.

12 months is really just a blink of an eye when it comes to measuring the performance of any equity index but it is simply untrue to suggest that Eurozone equities have been perennial under-performers.

Again, the past is not prologue but I agree that holding stocks at something close to their market cap weight is a good strategy.
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versus the FTSE all world index ( VWRL.AS ) ,it is true using a three year , five year , ten year and twenty year measure

you conveniently picked the last twelve months as a period !,even using the most recent nine month period , the european market underperforms
 
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Sorry but I'm not cherry picking anything.

You originally said that US stocks outperformed EZ stocks over whatever time frame you use "long or short". That is untrue and I gave you three recent examples of time frames where EZ stocks have outperformed US stocks.

You then said you would have been better off buying a global index fund last year because of the weighting of US stocks in global indices. I simply pointed out that EZ stocks actually outperformed global indices over the last 12 months.

Again, I am an advocate of investing in equities on a global basis at something close to their market cap weightings. That is simply because I don't pretend to know what stock, sector or region will out perform in the future.
 
I think at this stage Europe is the place to be investing but I have thought that and have been investing like that since 2015, however I still had some investments in the US technology companies which done great. I think a lot of the outperfomence of the US market can be explained by the sheer dominance of the US technology sector. Us technology companies are the ones that drove the internet and have benefited hugely from it, nobody can touch them, only south Korea and Japan come close. I think Japan is one to watch now with its big leadership in robotics
 
DOW down 3% this evening (was down 1500pts at one stage).
NASDAQ was down nearly 5% a short time ago.
It looks like they are coming back somewhat now, but this kind of volatility seems to be indicative of the nervousness building in the market.
 
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stantheman said:
DOW down 3% this evening (was down 1500pts at one stage).
NASDAQ was down nearly 5% a short time ago.
It looks like they are coming back somewhat now, but this kind of volatility seems to be indicative of the nervousness building in the market.
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The market climbs a wall of worry. !!!
 
delfio said:
Is it merely a correction or will there be a crash :eek:
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Nobody knows.

My guess, just a correction. The 'crash' however is on its way. Not so much a 'crash', but more so a 'clash'. A clash of debit v credit, leading to a 'crash'.

That of course is just my take, I could be wrong.
 
Just for some perspective, today marked the end of the S&P's record 450-day run without a 3%+ pullback from a closing high. The longest previous period without a 3% pullback was 370 days.

Volatility is the norm in equity markets - the recent calm has been exceptional.
 
Sarenco said:
Just for some perspective, today marked the end of the S&P's record 450-day run without a 3%+ pullback from a closing high. The longest previous period without a 3% pullback was 370 days.

Volatility is the norm in equity markets - the recent calm has been exceptional.
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Excellent point. I have never seen so many hourly updates on the price of shares and crypto currencies.

The most interesting thing about the latest movement is a) It's a reaction to expected higher inflation in the US and therefore higher interest rates quicker than expected. This lends credence to many peoples argument that equity markets are being propped up by cheap money and b) How the sell off in the US on the back of higher bond yields caused a huge sell off in Asia and Europe as well. The US consumer still rules the world.
 
Sunny said:
Excellent point. I have never seen so many hourly updates on the price of shares and crypto currencies.

The most interesting thing about the latest movement is a) It's a reaction to expected higher inflation in the US and therefore higher interest rates quicker than expected. This lends credence to many peoples argument that equity markets are being propped up by cheap money and b) How the sell off in the US on the back of higher bond yields caused a huge sell off in Asia and Europe as well. The US consumer still rules the world.
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No sign of higher interest rates in Europe, what' s the European markets excuse for puking?
 
The Dow falling 4.5percent in a couple of hours, a new record, never seen something happen so fast from nothing. It feels like a panic though , you never get used to it either. I had to laugh this morning at the financial analysts trying to come with reasons for the sell off, "the dog ate my homework, sir". Feeling a bit more humble myself this morning was getting used to looking at portfolio going up every week
 
RedOnion said:
There is. 10 year bond yields are up
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yes but draghi in his most recent ECB press briefing cast doubt on the possibility of a rate rise this year , different story with the fed in the usa

europe follows the usa down regardless , europe hasnt had a particularly good run this past nine months and is now 1% below where it was this day three years ago ! , completely different to what happened in the usa where the market seemed to forever be climbing , if the u.s market was below where it was this day in 2015 , no one would describe the market as being strong ?
 
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